Tech Mahindra's Net Profit boosts by almost double in Q4FY16

Tech Mahindra has declared its Q4FY16 results. The company’s revenue has increased by 10.54 per cent to Rs 6889 crore in Q4FY16 as compared to same period in previous financial year. Its EBITDA too has risen by 25.08 per cent to Rs 1161 crore in Q4FY16 on a yearly basis. Its EBITDA margin has expanded by 169 basis points to 16.87 per cent in Q4FY16 as compared to previous fiscal year. Tech Mahindra’s Net Profit has increased by almost double to Rs 897 crore in Q4FY16 on a yearly basis.

On the yearly front, Tech Mahindra’s top line has increased by 17.12 per cent to Rs 26494 crore in FY16 as compared to previous financial year. The company’s EBITDA has risen by 3.99 per cent to Rs 4318 crore in FY16 on a yearly basis. Its EBITDA margin has contracted by 206 basis points to 16.3 per cent in FY16 as compared to previous fiscal year. Tech Mahindra’s Net Profit margin has expanded by 15 basis points to 11.77 per cent in FY16 on a yearly basis.

Tech Mahindra’s board of directors decided to drop the payment bank plan on May 24. The company had received approval from the RBI for setting up a payment bank on August 20, 2015.

The share price of Tech Mahindra increased by 0.55 per cent on bourses; and closed at Rs 479.25 on an intraday basis.

Tech Mahindra is engaged in the business of computer programming, consultancy and related services. The company operates mainly into two sectors: telecom business and enterprise solutions business. The telecom business provides consulting-led integrated portfolio services to customers. Its enterprise solutions business provides IT services, including IT enabled services, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services.